PayU gets RBI approval to operate as Online Payment Aggregator in India

By Gloria Methri

Online payment services provider PayU has received final authorisation from the Reserve Bank of India (RBI) to operate as an Online Payment Aggregator under the Payment and Settlement Systems Act, 2007. This regulatory milestone marks a significant step forward for the Prosus-backed FinTech player in cementing its role in India’s evolving digital financial ecosystem.

“We are pleased to share that PayU Payments Pvt. Ltd. has received final authorisation from the Reserve Bank of India (RBI) to operate as an Online Payment Aggregator under the Payment and Settlement Systems Act, 2007. We are deeply grateful to the RBI for the trust placed in us and for the opportunity to contribute responsibly to India’s dynamic payments ecosystem,” a PayU spokesperson said in a statement.

The company provides payment gateway infrastructure to over 500,000 merchants—including major eCommerce platforms, large enterprises, and growing SMBs—enabling online transactions across 150+ payment methods such as UPI, credit and debit cards, net banking, wallets, and EMIs.

The approval empowers PayU to seamlessly onboard merchants and facilitate digital payments in compliance with RBI’s stringent governance and security norms. This final nod comes after PayU underwent a corporate restructuring and compliance overhaul following the withdrawal of its earlier payment aggregator licence application in early 2023.

The approval also comes at a pivotal moment for the company, as it is reportedly preparing for a public listing in India. Industry insiders view this as a positive development that enhances PayU’s credibility ahead of any IPO plans.

“As we look ahead, our focus remains on building a resilient, compliant, inclusive, and innovation-led institution—one that empowers merchants of all sizes and plays a meaningful role in advancing the Digital India vision of the RBI and the Government of India. We sincerely thank our partners, merchants, employees, customers, and all stakeholders for their continued trust and support,” the statement added.